Banker’s Guarantee/Standby Letter of Credit

Banker’s Guarantee/Standby Letter of Credit

Provide payment assurance to your beneficiaries

Reassure your buyer or seller of payment with a Banker’s Guarantee/Standby Letter of Credit. In the event that you fail to fulfil your contractual obligations, we will honour payment to your beneficiaries upon receipt of a claim that complies with the guarantee terms.

 

How does Banker’s Guarantee/Standby Letter of Credit works?

 

 

  1. Applicant and beneficiary enter into a contract and agree that a Banker's Guarantee is required
  2. Applicant approaches DBS (issuing bank) to issue a Banker's Guarantee in favour of the beneficiary
  3. DBS issues the Banker's Guarantee, and
    1. sends a financial instruction to an advising bank, which is usually located in beneficiary’s country, or
    2. couriers the hardcopy Banker’s Guarantee to the beneficiary, or
    3. notifies the applicant of self-collection at any of our ten trade document counters or collection branches
  4. Once the advising bank receives the Banker’s Guarantee, it will advise it to the beneficiary

 

Why choose DBS Banker’s Guarantee/Standby Letter of Credit?

  • Grow your business with the Best Trade Finance Bank in Singapore, as named by Alpha Southeast Asia and The Asia Banker in 2012. We also received this accolade from Global Finance in 2012, for the 8th consecutive year
  • Leverage DBS Bank’s AA- and Aa1 credit rating to provide your beneficiary with payment assurance upon receipt of claims made out in compliance with the guarantee terms
  • Collect your banker’s guarantee from any of our ten conveniently located trade counters and DBS collection Branches

Products Details

  • A Banker’s Guarantee/Standby Letter of Credit can be used as a:
    • Payment Guarantee – This protects the beneficiary in the event that the applicant fails to honour the payment under their contract
    • Bid Bond – This enables the applicant (bidder) to use DBS’ credit to support the bid, and can also be used to insure the successful bidder that the contract will be met
    • Performance Bond – Some bidding contracts require the successful bidder to provide a performance guarantee to protect against a default
    • Financial Guarantee – This helps the applicant’s overseas subsidiaries obtain financing or credit facilities from banks
  • The Guarantee can be issued by DBS China or by our overseas branches/correspondents, according to the guarantee format provided by the applicant
  • Calculated based on guaranteed amount and period
  • Charge rate depends on actual risk undertaken by DBS, and is capped at 5%
  • Counted as three months if guarantee period is less
  • Actual number of months counted if guarantee period is more than three months

FAQs

How do I complete the Banker’s Guarantee/Standby Letter of Credit application form?

Please call us at 4008208988

Where do I find a Banker’s Guarantee/Standby Letter of Credit format?

Please contact us for the format.

How long does it take to process a Banker’s Guarantee/Standby Letter of Credit?

We can process your Banker’s Guarantee/Standby Letter of Credit within 48 hours, provided the application and credit limit are in place.

Where do I collect my Banker’s Guarantee/Standby Letter of Credit?

You may collect them from one of our ten conveniently located Trade Document Counters and DBS collection branches.

 

How do I apply?

Simply call us at 400 820 8988 (or +86 400 820 8988 if you're overseas) or visit any of our Branches. You may also email us and our Relationship Manager will contact you as soon as possible.

 

Disclaimer:

The information provided in this website is for general information only and nothing contained in this website constitutes an invitation, offer or solicitation with respect to the entry into transactions mentioned in this website or subscription, purchase or sale of any products, services, securities or other financial instruments mentioned in this website or the taking of any position or the adoption of trading strategy in respect of any asset class (eg. currency, interest rate, commodity, equity etc). The information provided in this website is not provided with regard to the specific investment objectives, financial situation and the particular needs of any particular person who accesses this website.

 

The information provided on this website is subject to change without notice, its accuracy is not guaranteed, and it may be incomplete or condensed. Accordingly, no representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information in this website. We are not acting as your advisor or agent when providing the information in this website. The information in this website does not purport to identify the risks (direct or indirect) or other material considerations which may be associated with you entering into a particular transaction, subscribing for a particular service or purchasing or selling a particular security or financial instrument. Prior to entering into any proposed transaction or entering into any subscription, purchase or sale of any security or financial instrument, you should determine (after consultation with your own advisors if you deem fit), without reliance upon us or our affiliates, the economic risks and merits, as well as the legal, tax, accounting or other material characterisations and consequences of the transaction, subscription, purchase or sale, as the case may be, and that you are able to assume these risks.

 

We, and/or our affiliates, may hold, or trade, or act as market-maker, in any securities or other financial instruments mentioned in this website or related derivatives or may take positions or use trading strategies in respect of any asset class similar to or which differ from or be contrary to those mentioned in this website. We, and/or our affiliates conduct many businesses and activities that may relate to issuers of third party securities mentioned in this website and may provide broking, banking and other financial services to such issuers.

 

Anyone receiving or accessing this website must make their own assessment of the materials herein and conduct such investigations and seek such professional advice as they think fit for such purpose. The information provided on this site should not be regarded by recipients as a substitute for the exercise of their own judgment.

 

© DBS BANK LTD, 2013. All rights reserved. Any unauthorized use, duplication or disclosure is prohibited by law and will result in prosecution.

Awards
Best Structured Trade Finance Solution, China 2015

Best Structured Trade Finance Solution, China 2015

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